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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2017
Commitments and Contingencies |
Commitments and Contingencies | 7.Commitments and Contingencies At September 30, 2017, we had commitments as follows (in thousands):
|  |  |  |  |  |  |  | Total |  |  |  |
|  | Investment |  | 2017 |  | Commitment |  | Remaining |
|  | Commitment |  | Funding |  | Funded |  | Commitment |
Real estate properties (See Note 2. Real Estate Investments) |  | $ | 60,274 | (1) | $ | 12,120 |  | $ | 28,456 |  | $ | 31,818 |
Accrued incentives and earn-out liabilities (2) |  |  | 14,000 |  |  | — |  |  | — |  |  | 14,000 |
Lease incentives |  |  | 7,113 |  |  | 438 |  |  | 438 |  |  | 6,675 |
Mortgage loans (See Note 2.Real Estate Investments) |  |  | 51,000 | (1) |  | 9,333 |  |  | 14,672 |  |  | 36,328 |
Joint venture investments (See Note 3. Investments in Unconsolidated Joint Ventures) |  |  | 25,650 |  |  | 1,101 |  |  | 23,014 |  |  | 2,636 |
Notes receivable (See Note 4. Notes Receivable) |  |  | 500 |  |  | — |  |  | — |  |  | 500 |
Totals |  | $ | 158,537 |  | $ | 22,992 |  | $ | 66,580 |  | $ | 91,957 |
| (1) |  | Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties.
| (2) |  | During the three and nine months ended September 30, 2017, we recorded non‑cash interest expense of $125 and $476, respectively, related to these contingent liabilities. At September 30, 2017, the fair value of our contingent payments was $8,790.
As part of a lease arrangement, we committed to provide the lessee a lease incentive payment upon the properties covered under the lease achieving a certain rent coverage ratios. Based on the projected performance at lease commencement, the lease incentive payment was deemed probable and estimable; therefore, we recorded the contingent lease incentive liability and the related lease incentive asset. The contingent lease incentive liability was accreting up to the settlement amount of the estimated payment date and the related lease incentive asset was amortizing as a yield adjustment over the life of the lease. During the third quarter of 2017, upon reviewing the current projections of the properties, we concluded that as a result of the lessee changing its business model, the payment of the contingent lease incentive was not probable and the current projections do not support the properties achieving the required rent coverage ratios within the exercisable period. Accordingly, we wrote off the accrued incentive liability of $3,476,000 and the related lease incentive asset of $2,634,000 resulting in income of $842,000 which was included in the interest and other income line item in our consolidated statement of income. We are a party from time to time to various general and professional liability claims and lawsuits asserted against the lessees or borrowers of our properties, which in our opinion are not singularly or in the aggregate material to our results of operations or financial condition. These types of claims and lawsuits may include matters involving general or professional liability, which we believe under applicable legal principles are not our responsibility as a non-possessory landlord or mortgage holder. We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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